CANADA STOCKS-TSX to edge higher as Greece seals deal

Reuters Staff

4 Min Read

Feb 21 (Reuters) - Toronto’s main stock index was set for a slightly higher open on Tuesday, after debt-laden Greece finally secured a second bailout that would help resolve its immediate financing needs.

Investors, however, were still cautious about the plan’s viability as tough austerity measures kick in later in the year.

FACTORS TO WATCH

* Canadian equity futures pointed to a higher open.

* U.S. stock index futures advanced after euro zone finance ministers secured a deal that will enable Greece to avoid a March default.

* European stocks fell, retreating from near-seven month highs, as investors booked recent profits following a long-awaited deal over a new bailout for Greece that failed to dispel concerns over the outlook for the troubled country.

COMMODITY PRICE MOVES

* Oil stayed within sight of $120 a barrel as world consumers grappled with supply disruptions ranging from Iran to Sudan to the North Sea.

* Gold rose for a second day, taking its cue from a brief rally in the euro after euro zone finance ministers struck a deal with Greece on its emergency funding, while silver shrugged off data that showed a steep drop in Chinese imports.

* Copper rose as the euro gained after the single-currency zone’s finance ministers sealed a bailout package for Greece, which also increased investors’ appetite for assets perceived as risky such as industrial metals.

CANADIAN STOCKS TO WATCH

* Fortis Inc : The company said it will acquire CH Energy Group Inc for about $1 billion.

* Flint Energy Services : The U.S. engineering company will buy the oilfield services company for C$1.25 billion in cash, to expand its presence in the oil and gas sector.

* Kinross Gold Corp : At least four U.S.-based law firms said they are investigating the gold miner, after the company failed to disclose that low-grade ore had been found at its Tasiast property in West Africa.

* Bank of Montreal : The bank said it will buy a 19.99 percent stake in China’s COFCO Trust Co, a unit of state-owned COFCO Group, to expand its offerings to the Asian country’s high net worth and institutional clients.

* Quadra FNX : Shareholders of the miner approved a C$3 billion takeover offer from KGHM on Monday, the tie-up is set to geographically diversify the Polish miner’s asset base and boost its copper output.

* Metro Inc : The grocer said its CFO Richard Dufresne has resigned to accept a position with another organization and also added it will announce Dufresne’s successor at a later date.

* Onex Corp : The company and Apollo Global Management LLC are expected to submit final bids next week for the $2.2 billion U.S unit of Australia’s Brambles Ltd, people familiar with the matter said on Friday.

ANALYST RECOMMENDATIONS

Following is a summary of research actions on Canadian companies reported by Reuters.